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Report: Detroit went overboard paying pensions

  • It seems Detroit was extremely generous while paying pensions, which costed the city $2B. It offered the current workers extra cash, bonuses were given to retirees and even the families received money after the deaths of workers not qualified to receive any at the time. 

    A former auditor of the city referred to these payments as being "dandelions". "You just accept them," he said. "They were there, something you've seen all your life."

    Reports suggest that these earnings are out of the internal account, which has been set up by unions and officials. 

    A rep for pension officials mentioned that people were having a hard time, "and we thought we would give them some extra," she said. 

    City watchdogs are expected to address the issue today. 

    Tagged as: detroit bankruptcy, detroit loss, detroit pension plans, pension payment u.s., money news, business news